RENEW Wisconsin Electric Vehicle Blog: Record Breaking 2018

2018 was a year of tremendous growth in the electric vehicle market. We saw new electric cars released (and one of our favorites get cancelled), two manufacturers hit the 200,000-vehicle tax credit cap, and across the county we hit record sales numbers. A few highlights include:

It’s safe to say the electric vehicle market is officially on the rise. We ended the year with 361,307 electric cars sold across the country, making up 6% of all passenger car sales!

2 Manufacturers Hit Tax Credit Cap

Tesla and GM have both sold over 200,000 electric vehicles. A great start down the adoption curve for electric cars, but also a signal that customers won’t receive their full tax credit on these cars any more.

After a manufacturer has sold 200,000 electric vehicles, the consumer tax incentive is reduced for that manufacturer’s vehicles. The full tax credit, $7500, remains for the rest of the quarter in which they hit the cap, plus the next quarter. After that, the tax credit is halved for 6 months, then halved again for the next 6 months, before expiring entirely.

Tesla hit the 200,000-vehicle cap in July, 2018 so their tax credit went from the full $7,500 to $3750 on January 1. From July 1 to the end of the year it’s halved again, to $1,875. Tesla buyers won’t see any tax credit in 2020.

GM hit the 200,000 mark in December, 2019 due to their all-electric Chevy Bolt and popular, although discontinued, plug-in hybrid, the Chevy Volt. GM vehicles can receive the full credit until March 31st. From April 1 to September 30 buyers will get the halved credit of $3750, and then $1875 until March 31st 2020.

What it means for 2019

2019 is an excellent year to go electric, especially if you have your eye on a Tesla or GM model and want to capitalize on the tax credits. Manufacturers have been pushing to extend the tax credits, though with limited success. Their reason being that it’s unfair to penalize the manufacturers that are first to market by reducing the consumer incentive to purchase their vehicles. And I agree – why punish the innovators? I’m expecting to see more activity around the subject in 2019.